University of New South Wales Faculty of Law Research Series
Last Updated: 12 July 2012
A Financial Transactions Tax: The One Essential Reform
Ross Buckley, University of New South Wales
This paper is available for download at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2104015
This paper was published at Vol 47 No 2
Intereconomics: Review of European Economic Policy, March/April 2012, 99-103.
may also be referenced as  UNSWLRS 21.
The financial markets have changed quite fundamentally in the last a few decades, yet the measures we use to regulate them have not really changed at all. The market patterns of high frequency trading, computer generated activity and short-termism are now well entrenched, and will be difficult to change. Of the various ways available to seek to encourage this change, the best, in my view, is a financial transactions tax (FTT). When one analyses most of what has been written of late about the EU’s proposed FTT, one finds it to be riddled with myths, inaccuracies and untruths. This paper analyses seven most common myths of FTT.